Green Arrow holds €136.2m final close for private debt fund

Alessia Argentieri
23 November 2018

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Green Arrow Capital has held a final close on €136.2m for its Green Arrow Private Debt fund.

The fund inherited the portfolio of Quadrivio Private Debt, after Quadrivio was wholly acquired by Green Arrow in November 2017. The GP launched the vehicle with a €250m target and held a first close on €108.5m in December 2016.

According to a statement, Green Arrow Private Debt pays semi-annual coupons and has a return target of 4-5%.

The fund's management team is led by investment director Marco Meda, who will be supported by senior investment manager Giovanni Mattioli, investment analyst Silvia Palma and senior adviser Galeazzo Scarampi.

Green Arrow recently held a final close for its third buyout fund, Green Arrow Private Equity 3, on €230.6m. In addition, the GP plans to launch two new vehicles, a €200m fund called Special Credit Situations, which will be on the road by the end of the year; and a €500-700m fund named Fondo Infrastrutture Energetiche, which will launch at the beginning of 2019 to focus on energy infrastructure and renewables.

Investors
The fund's LP base is mainly composed of funds-of-funds, banks, foundations, family offices and pension funds, including Byblos Pension Fund and Fondo Italiano d'Investimento. In addition, the management committed around €1.5m.

Investments
The fund supplies debt to Italian SMEs with an EV between €50-500m, in order to support their growth projects, their international expansion and the development of their production capacity. The vehicle deploys different packages and tailor-made solutions according to the cash flow capacity of the target company, including senior secured, senior unsecured and unitranche facilities. It primarily invests alongside a bank in syndicated loans or providing capital directly to private equity funds or entrepreneurs in LBO deals, and does not use leverage at the fund level.

Green Arrow Private Debt has already deployed 50% of the capital in eight deals, including a €9.5m credit facility for the Sici-backed MBO of Corpo dei Vigili Giurati in June 2017 and a €10m debt package to support Carlyle's acquisition of Venice-based shoes manufacturer Golden Goose.